Concept Question 2.4 False.

An acquirer is considered to be a parent if it has significant influence which make an acquirer has power to control the subsidiary. It can be done by acquiring a controlling interest in the equity of subsidiary.

Concept Question 2.5 True. A merger of parent and subsidiary makes them reporting consolidated financial statement but run the business as separate legal entity.

Concept Question 2.6 Yes. A parent-subsidiary relationship can be done not only by acquiring controlling interest, but also by having a contractual right to control over an entity.

Concept Question 2.7 No. Although Company A has a contractual right to remove the majority of the members of BOD, it cant be considered as parent-subsidiary relationship. Its happened with the reason that its control is only in small part of an entity not in a big part of entity.

Concept Question 2.8